GTBank

[kostical]

Contact your broker immediately for more information.....

"The GDRs are being issued at a Reference Price of US$12.75 (or N1,625.00) per GDR and 1 GDR is equivalent to 50 GTBank shares. The minimum subscription is 50 GDRs (i.e. US$637.50 or N81,250.00) and applications should be made in multiples of 50 GDRs. The GDRs can also subsequently be exchanged for ordinary shares in GTBank.

The domestic Offering opened today and is expected to close on Thursday, 19 July 2007 and interested investors will be required to submit application forms and make payment in naira or US$ before the closing date. You will also be required to open Domiciliary accounts (if you do not already maintain one) into which future dividends (in US$) on the GDRs will be paid. If you wish to fund your application from your Investment Margin Facility, please fill and sign the indemnity letter (attached) and return to us alongside your filled application form.

You are advised to submit your application as soon as possible as the GDRs may be allocated on a "first-come-first served" basis once we have exceeded the amount allocated to IBTC even if the Offer has not yet closed. The listing and commencement of trading in the GDRs on the London Stock Exchange is expected to occur a week after the domestic Offer closes".

[oseitutu]

Kostical abeg are you IBTC or Afrinvest?

[kostical]

The information is from IBTC

[RethinK2.0]

it will be very interesting to see how this gdr works out in the long run. Because it will start trading a week after closing on the LSE, i am just thinking.

1. Will the NSE share price of GTB drive the GDR price on LSE or vice versa?

2. GDR's are traded very thinly and are not exactly very liquid moreso in this case as it looks like institutional foreign investors are grabbin the biggest chunk of it....i would not think it is appropriate for anyone thinkin to invest for less than a year or two. what do you think?

[oseitutu]

This is what Afrinvest had to say about the GDR some days ago.

[oseitutu]

This is a link to the application form, while this is the prospectus.

[Avocado]

Originally Posted by oseitutu

This is what Afrinvest had to say about the GDR some days ago.

Oseitutu: when exactly did Afrinvest send this out?

Cheers.

[oseitutu]

Originally Posted by Avocado

Oseitutu: when exactly did Afrinvest send this out?

Cheers.

11th July whas when it was sent to one of my emails. I only saw it a few days later. How is this date important?

[Avocado]

Originally Posted by oseitutu

11th July whas when it was sent to one of my emails. I only saw it a few days later. How is this date important?

Probably important because of the claim that they were not authorized to send out the document before the 13th, and at the very earliest, the 12th. With the minimum of 1,000 GTBank GDR Afrinvest wants, it's 'interesting' to figure how easy it is to raise over US$12,000 within 2 working days, and have it sent to Nigeria via transfer. I believe you'll now get it. Yesterday (the 17th) is the date Afrinvest sent this to some of their clients. I have earlier written that they appear to have a peculiar policy where important information is involved. The NASCON sale is a recent example.
.

[oseitutu]

Well maybe my timezone made the 12th AM in 9ja seem like 11th in US. However, the people do not even know I am not in 9ja and I operate my 9ja investments with money in 9ja. When I go home, I carry GMG and change it at Eko Hotel at BM rate. Then straight to my Brokers! Meanwile, wire transfer is very possible at that level. All it takes is for the person to work with Afrinvest UK. If the wad is confirmed with Afrinvest UK, I am sure the AfrinvestWA team can say it is money in the kitty.

[compengr]

Please can someone explain the effects of the GTBank GDR on the NSE price of GTBank. That is, compare the pros and cons of trading on LSE and NSE at the same time. For example, if the LSE crashes (just postulating here) how will it affect the NSE price of GTBank??

Thanks.

[ttoladele]

The easiest answere to your question is to remind you of the stock market crashes in 2001 following terrorist strike on the twin towers in New York. The FTSE 100/250 and other major western nations indices went into a free fall. Our NSE was hardly affected! The downside to over exposure of our economy to foreign investor is loss of this immunity from impact of hiccoughs in the western world especially US. As a UK resident with keen interest in the LSE, the FTSE has underperformed in the last five years, the FTSE 100 index has not grown beyond 40-60% over this period, while the secondary and tertiary markets have only been marginally better. In fact it is only recently that we have seen a significant improvement, but can it last? For now i will rather patronise NSE until the party is over! Any crisis in the US causes a drop in the index eg the ongoing mortgage crisis in US has become another archilles heel on the FTSE. If America has cold some part of the world are not immuned to it, and UK is one of them. I suspect that the GDR will be listed on the secondary or even the tertiary market of LSE. The only advantage i see is the perceived prestige of owning foreign shares. For me this is no big deal. I have lost money on the LSE, but this is not necessarily so for other investors. I own a good number of GTB shares, i did not do the GTR. The decision is yours' however, you alway get it to buy from the trading floor from willing sellers. I wonder how it has performed on the trading floor since it's listing, i will check this out to keep the house informed especially those who have bought into it.
With regards to the GTB GDR now on LSE, it more difficult to predict it's performance compared to ordinary GTB shares listed on the NSE. My guess is that NSE will outperform LSE . And interms of dividend payment by GTB, i believe there will be no difference except that holders of the GDR will have theirs converted to US Dollars.
The jury is now out. What do people think?

[oseitutu]

This ratio is what was stated in the prospectus. I think the LSE GDR is likely to drive the price of GTB in Nigeria up. They will check each other and believe it or not, FTSE may rise or fall, but the backbone of the GDR is NSE. Thus its price will depend more on movements in NSE than overall LSE/FTSE movements. Remember you can convert to GTB shares anytime you like after registry paperwork. Thus it is likely that both prices will be at par irrespective of what is happening on LSE floors.

[Avocado]

It's possible to obtain the daily prices of GTBank on the NSE and the GDR prices. One rational way to begin making any comparisons is to gather the date. When things're normal, the numbers tell some truth.

.

[RethinK2.0]

I have been following the GDR price on LSE and the NSE price of GTB.
The NSE price seems to be the main driver. When it rises...the GDR rises and vice versa.

I still feel GTB should just have done a public offer and all would have benefited at least from tech suspension. Afterall the money could have been raised in naija

[oseitutu]

Originally Posted by RethinK2.0

I have been following the GDR price on LSE and the NSE price of GTB.
The NSE price seems to be the main driver. When it rises...the GDR rises and vice versa.

I still feel GTB should just have done a public offer and all would have benefited at least from tech suspension. Afterall the money could have been raised in naija

Please can you give us a link to where GTB GDR price is quoted on LSE so that I can compare to IBTC price quote from NSE and make my comments on SMN. (Na waa for all these abbreviations sef, I am begining to sound like FBI when talking to CIA about NSA!)